Madhya Pradesh has got a big relief from the resolution of the 30 year old dispute of Sardar Sarovar Project. Now the state will have to pay only Rs 231.80 crore instead of Rs 1500 crore.
Bhopal. Chief Minister Dr. Mohan Yadav said that under the leadership of Prime Minister Narendra Modi, an important achievement has been achieved in strengthening water security and promoting cooperative federalism. In the meeting chaired by Union Home Minister Amit Shah and in the presence of Union Jal Shakti Minister CR Patil, the nearly three-decade old rehabilitation and resettlement expenditure dispute related to the Sardar Sarovar Project between Gujarat, Maharashtra, Rajasthan and Madhya Pradesh was unanimously resolved. With this decision, the financial burden on Madhya Pradesh will be significantly reduced.
Consensus reached on 30 year old rehabilitation expenditure dispute, example of better coordination between states
Chief Minister Dr. Yadav said that this decision is an excellent example of solving complex matters through better communication, mutual cooperation and consensus among the states. He expressed his gratitude to Prime Minister Narendra Modi and Union Home Minister Amit Shah for this historic decision.
Madhya Pradesh’s share decreased from 31.98% to 16.17%.
The Chief Minister said that the Attorney General of India, in his opinion given in February 2026, had fixed Madhya Pradesh’s share in the rehabilitation expenditure at 31.98 percent. Based on this, the state would have had to pay approximately Rs 1,500 crore to Gujarat. However, in the meeting held between Madhya Pradesh, Gujarat, Maharashtra and Rajasthan in Delhi, with the consent of all the states, Madhya Pradesh’s share was reduced to 16.17 percent. After this change, now Madhya Pradesh will have to pay only Rs 231.80 crore, which will provide huge financial relief to the state.
New share of four states decided, Gujarat will get the largest share
In the meeting, the new share of the four states regarding rehabilitation expenditure was also decided.
- Gujarat’s share was increased from 50.57 percent to 75 percent.
- Maharashtra’s share was reduced from 15.15 percent to 7.66 percent.
- Rajasthan’s share was reduced from 2.31 percent to 1.17 percent.
- Madhya Pradesh’s share was reduced from 31.98 percent to 16.17 percent.
Chief Minister Mohan Yadav said that according to this new arrangement, Gujarat will receive a total of Rs 553.43 crore from the participating states.
Madhya Pradesh will get big benefit of electricity, irrigation and drinking water from Sardar Sarovar Project.
Chief Minister Dr. Yadav said that Madhya Pradesh gets 57 percent of the total electricity produced from Narmada and Sardar Sarovar projects. Till now the state has received about 3,900 crore units of electricity at an average rate of 85 paise per unit. He said that about 31 lakh hectares of agricultural land is getting irrigation facility from this project. Apart from this, drinking water of Narmada is being provided to many cities including Jabalpur, Katni, Dewas, Ujjain, Indore, Dhar. Besides, major industrial areas like Pithampur, Dewas and Vikram Udyogpuri are also being supplied water from this project.